{"id":88418,"date":"2025-08-25T00:00:00","date_gmt":"2025-08-25T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/logistics\/2025\/08\/25\/today-turkey-breaks-ground-on-its-azerbaijan-rail-link-latakia-investments-streamlined\/"},"modified":"2025-08-25T00:00:00","modified_gmt":"2025-08-25T00:00:00","slug":"today-turkey-breaks-ground-on-its-azerbaijan-rail-link-latakia-investments-streamlined","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/logistics\/2025\/08\/25\/today-turkey-breaks-ground-on-its-azerbaijan-rail-link-latakia-investments-streamlined\/","title":{"rendered":"TODAY: Turkey breaks ground on its Azerbaijan rail link + Latakia investments streamlined"},"content":{"rendered":"

Good morning, folks. <\/strong>We have a brisk read today as the summer slowdown continues, with rail and ports updates from Turkey and Syria leading the pack. But first, an update on the EU-US trade agreement\u2026<\/p>\n

THE BIG LOGISTICS STORY- US, EU finalizes trade pact details: <\/strong>The US and the EU have finalized their trade agreement after months-long negotiations, setting a 15% tariff rate on most of the EU\u2019s products heading to the US. This applies to several sectoral products, including pharma, automotives, and semiconductors. Meanwhile, the EU is expected to move towards removing its current 10% duties on US industrial products, including on US-made cars.<\/p>\n

There\u2019s a catch\u2026 or two: <\/strong>European cars, which currently face 27.5% rates, will only see their tariffs reduced when and if the EU moves ahead with slashing its duties on \u201call US industrial goods.\u201d European steel and aluminum will also still face the 50% duties targeting the imports of the essential industrial products. <\/p>\n

This story received a lot of attention from the int\u2019l press: <\/strong>Reuters<\/a> | Associated Press<\/a> | Bloomberg<\/a> | CNBC<\/a> | Politico<\/a> | BBC<\/a> <\/p>\n

HAPPENING TODAY-<\/p>\n

The <\/strong>Africa Procurement and Supply Chain Leaders\u2019 Conference<\/a><\/strong> will open its doors<\/strong> today <\/strong>and run through until Friday, 29 August in Dubai<\/strong>. The conference will bring together global industry leaders, policymakers, and stakeholders to explore AI innovation in procurement and supply chain efficiency, sustainability, and risk management.<\/p>\n

\n

WATCH THIS SPACE-<\/p>\n

<\/a> #1- <\/strong>US <\/strong>sanctions Iran-linked crude network: <\/strong>The Trump administration has issued sanctions on 13 entities and eight vessels operating in the UAE, China, Hong Kong, and the Marshall Islands, which it says are facilitating the trade of Iranian crude oil, according to statements here<\/a> and here<\/a>. One of the targeted firms is the UAE-based Ozarka Shipping<\/a>, which manages and operates two Antigua and Barbuda-flagged vessels, Victory Ari and Sondos, as well as the Gambia-flagged Katsuya.<\/p>\n

More troubles in Iran\u2019s shipping world: <\/strong>A hacker group known as Lab-Dookhtegan claimed it disabled communications across Iran\u2019s fleet, affecting 39 tankers and 25 cargo ships, it reportedly told the diaspora-run outlet Iran International<\/a>. The group said it disrupted the operations of the National Iranian Tanker Company (NITC) and the Islamic Republic of Iran Shipping Lines (IRISL) \u2014 both state-linked entities heavily involved in shipping Iranian crude.<\/p>\n

The hackers also claim to have infiltrated <\/strong>Fanava Group<\/a><\/strong>, an Iranian IT and telecoms holding company, the diaspora-run Iranian outlet reports. This allegedly allowed the group to halt Falcon, a program central to Iran\u2019s fleet operation. <\/p>\n

Not the first time: <\/strong>Lab-Dookhtegan alleged it targeted 116 NITC and IRISL vessels in a similar attack earlier this year, Iran International<\/a> reported in March.<\/p>\n

#2- <\/strong>Oman <\/strong>kickstarts OMR 12 mn road paving, linkage project:<\/strong> The Omani government is setting up internal road, paving, and linkage projects worth upwards of OMR 12 mn in Wilayat Al Mudhaibi of the North Al Sharqiyah Province, Times of Oman<\/a> reports. The projects \u2014 spanning roughly 71 km \u2014 are part of an OMR 25.5 mn road infrastructure push in the province covering 145 km to improve connectivity and economic activities.<\/p>\n

\u2026.and<\/strong> rolls out Sohar road development project: <\/strong>Oman\u2019s Transport, Communication, and Information Technology Ministry (MTCIT) has launched a tender to design and implement the 9km-long Sohar Link Dualization project in North Al Batinah Governorate, set to take place over an 18-month period, according to a statement<\/a> released last week. The project \u2014 which starts from the roundabout at Oasis Mall to the bridge linking to Al Batinah expressway \u2014 aims to reduce traffic congestion and improve road networks. <\/p>\n

Not the only project in North Al Batinah:<\/strong> Oman awarded an OMR 221k consultation service contract back in June<\/a> for the Shinas-Mahdah dual carriageway project in North Al Batinah and Al Buraimi governorates. Meanwhile, its OMR 40 mn Dibba fishing port project \u2014 connecting North Al Batinah and Musandam governorates \u2014 was reportedly 75% finished in June 2024<\/a>.<\/p>\n

<\/a> #3- T<\/strong>urkey<\/strong> tightens the screws on Israeli-linked ships: <\/strong>Turkish port authorities have started \u2014 informally \u2014 demanding written pledges from shipping agents to ensure their vessels are not linked to Israel, Reuters<\/a> reported on Thursday, citing unnamed industry sources. Ships that are Israeli-flagged, managed, owned, arriving from, or heading to Israel will not be allowed to dock at ports throughout Turkey.<\/p>\n

That\u2019s not all: <\/strong> The pledges must confirm that vessel owners, managers, and operators are not shipping cargo to Israel \u2014 including military equipment and hazardous shipments such as explosives and radioactive materials, the newswire said. Turkey-flagged ships are allegedly also banned from calling at Israeli ports, Bloomberg<\/a> reported on Thursday. <\/p>\n

REMEMBER-<\/strong> Turkey halted all trade with Israel in May 2024<\/a> \u2014 having reached USD 7 bn annually in 2023 \u2014 on the back of its refusal to allow Turkish aid airdrops into Gaza. However, trade between the two countries has not come to a total stop, Bloomberg said, citing local media \u2014 though Turkey has denied allegations that it used a loophole to s<\/a>hip USD 394 mn worth of ca<\/a>rgo<\/a> to Israel through third countries. <\/p>\n

<\/a> #4-<\/strong> Boeing<\/strong>, China near 500-jet order: <\/strong>US planemaker Boeing is making headway on an agreement that could see it sell as many as 500 aircraft to China, Bloomberg<\/a> reported on Thursday, citing unnamed sources. The parties have not yet finalized the agreement terms \u2014 pending a defusal of trade tensions with the US, sources told the outlet. <\/p>\n

The sale will reportedly play a key role in Washington and Beijing\u2019s long-term trade negotiations.<\/strong> Both sides agreed to renew<\/a> their tariff truce<\/a> for another 90 days last week, keeping US levies at 30% and China\u2019s tariffs at 10%. A successful trade pact also hinges upon a bilateral agreement regarding hot-button issues such as microchips and rare earth minerals<\/a>, the sources said.<\/p>\n

\n

MARKET WATCH- <\/p>\n

#1- Oil prices went slightly up this morning after a Ukraine attack on Russian energy <\/strong>sites raised concerns over tightening supplies<\/strong>, Reuters<\/a> reports. Brent crude futures rose by USD 0.03 to reach USD 67.76 \/ bbl by 03.42 GMT, while US West Texas Intermediate (WTI) increased USD 0.07 to trade at USD 63.73 \/ bbl. <\/p>\n

ALSO- Saudi is ramping up refined products exports, which rose<\/strong> by 148k barrels per day <\/strong>(bbl \/ d) to some 1.48<\/strong> mn bbl \/ d in 2Q<\/strong>, the highest since 2Q 2022, Mees<\/a> reports. Crude output averaged 9.31 mn bbl \/ d in 2Q \u2014 the highest since 2Q 2023 \u2014 and refining runs hit 2.71 mn bbl \/ d. Crude exports also edged up to some 6 mn bbl \/ d in 2Q, bucking the usual summer dip thanks to higher runs and more supply availability. <\/p>\n

Less burn, more exports:<\/strong> A 6% y-o-y increase in Aramco\u2019s gas output and expanded renewables capacity helped trim local oil burn for power and desalination by 6.3% in 1H, even as electricity demand grew 10%. Oil burn averaged 1.25 mn bbl \/ d in June, the lowest June figure since 2021, putting Saudi on track for its first annual oil burn decline since 2021 \u2014 and potentially the first time volumes dip below 1 mn bbl \/ d since 2019. <\/p>\n

#2- Baltic index snaps losing streak:<\/strong> The Baltic Exchange\u2019s dry bulk sea freight index \u2014 which tracks rates for the capesize, panamax, and supramax vessel segments \u2014 was up 2.7%<\/a> to 1,944 points on Friday, buoyed by increases across all segments. The capesize gained 3.3% to 2,793 points, while the panamax index increased 3% to 1,770 points. The smaller supramax index went up by 1.4% to 1,424 points.<\/p>\n

#3- The Drewry World Container Index fell by 4% to USD 2,250 per 40-ft container on Thursday<\/strong>, according to the latest index readings<\/a>. The drop comes on the back of market turbulence driven by the ongoing US tariffs\u2019 bonanza since April. The container forecaster projects the supply-demand balance to fall in 2H 2025, causing spot rates to fall further.<\/p>\n

DATA POINT- <\/p>\n

#1- Global FLNG capacity is set to quadruple by 2035:<\/strong> Floating liquefied natural gas (FLNG) capacity will reach some 42 mn tons per annum (mtpa) by 2030 and 55 mtpa by 2035, nearly four times the 14.1 mtpa recorded last year, according to Rystad Energy<\/a>. <\/p>\n

Cheaper, flexible, and mobile:<\/strong> Developers are leaning on FLNG units as a cost-efficient alternative to onshore facilities, with prices ranging between USD 500-640 per ton. FLNGs are also versatile across deepwater and can be relocated or sold to hedge against project delay. FLNG projects can be delivered faster than onshore facilities, supporting quicker final investment decisions and execution. <\/p>\n

SOUND SMART- <\/strong>FLNGs<\/a><\/strong> produce, while FSRUs consume.<\/strong> The former process and liquefy gas offshore for export, while the floating storage and regasification units (FSRUs) store imported cargoes and regasify them for domestic grids. <\/p>\n

#2- <\/strong>Oman\u2019s total foreign trade fell 9.5% to OMR <\/strong>11.5 bn (USD 30 bn) in<\/strong> 1H 2025<\/strong>, AGBI<\/a> reported on Thursday, citing data from the country\u2019s National Center for Statistics and Information. <\/p>\n

The breakdown: <\/strong><\/p>\n